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I requested money from my daughter, and PayPal charged a fee for the transaction. Paypal says friends and family are free to send money, but I cannot find where in Paypal you can set up friends and family!
If you were charged a fee, then the money was sent as "Goods and Services", if the sender was charged a fee, then the sender used a Credit Card as the funding source. Fees are explained here. Note, the section "Sending money to friends and family."
That would be dependent on what country you are in as in some countries the receiver pays the fee.
The information that @Anonymous_User gave is correct, but the link is specific to the US. If you're not in the US, please check the Fees page found by clicking "Fees" at the bottom of the main PayPal page. The one specific to your country or region should automatically load.
@kernowlass - Have you seen any countries where the fees for friends and family payments are adopted by the receiver? I know that it used to be a choice that the sender could make to pass the fees on to the recipient, but that was changed a while back. To my knowledge, that change was made in every country, but if you have seen something I have missed, please let me know.